A European border carbon tax – promises and pitfalls of trade measures as a leverage for climate protection
Contributing to heated international debates, the new European Commission president Ursula von der Leyen promised a carbon border tax to adjust for carbon costs at the border. To be sure, border carbon adjustments entail international trade law challenges, feasibility complications as well as fairness concerns. But if carefully designed, such adjustments can contribute to strengthening the ambition of climate action both in the EU and beyond it. More generally, there should be a stronger focus on using international trade as a leverage for climate protection.